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Why the Philippines is losing out in Southeast Asia’s investment boom
With Manila capturing just US$9 billion of the region’s US$244 billion capital influx last year, analysts urge reforms to close the FDI gap
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The Philippines still lags behind its neighbours in attracting foreign direct investment, with inflows stagnating in 2025 even as a financing influx swept the region.
This shortfall has cast a spotlight on a corruption scandal that has roiled the country and dented investor confidence, analysts say, compounding long-standing systemic issues.
Manila ranked sixth in Southeast Asia for FDI last year, capturing just US$9 billion of the region’s US$244 billion investment haul, according to the UN Conference on Trade and Development’s 2026 World Investment Report.
Southeast Asia overtook East Asia as the largest recipient subregion within “Developing Asia”, the report said, as total FDI inflows rose 10 per cent.
Investment was concentrated in high-value sectors such as semiconductors, electronics, communications and renewable energy, lifting the region’s total inflows to US$244.17 billion from US$222.50 billion the previous year.
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